Question

What distinguishes Managed Care organizations? A. MCOs come to inspect \& accredit hospital without which otherwise would go bankrupt.... B. MCO calculate how much Health \& Human Services (HHS) will spend C. Private health insurance companies decide arbitrarily what to pay providers D. MCOs have set prices for each illness, to save money for MCO administrators

Answer 1

Managed Care organizations, such as HMOs, differ from traditional fee-for-service health systems by providing healthcare based on the number of patients rather than the cost of services. This approach encourages efficient resource allocation and cost control.

Step-by-step explanation:

Managed Care organizations, such as Health Maintenance Organizations (HMOs), differ from traditional fee-for-service health financing systems by providing healthcare based on the number of patients they handle rather than the cost of services they provide. In HMOs, medical care providers receive a fixed amount per person enrolled in the plan, regardless of the number of services provided. This approach encourages healthcare providers to allocate resources efficiently and limit the quantity of care provided to control costs.